PANews August 10 news, according to Cointelegraph, Juan Carlos Reyes, chairman of the El Salvador Digital Asset Commission (CNAD), stated that investment banks are now allowed to hold Bitcoin and other digital assets on their balance sheets and offer cryptocurrency services to 'qualified' investors (equivalent to qualified investors in the U.S.). CNAD is the cryptocurrency regulatory authority of the El Salvador government.
The new (Investment Banking Law) allows private investment banks to provide services in local and foreign currencies to 'qualified investors' and permits them to hold a Digital Asset Service Provider (PSAD) license to engage in businesses involving digital assets like Bitcoin. Banks holding a PSAD license can choose to operate entirely as Bitcoin banks.
Supporters of the new law claim that it encourages foreign investment in El Salvador and positions the country as an emerging financial center.
Previously reported, El Salvador plans to establish the world's first Bitcoin bank.
